San Diego police officers agree to retiree health deal

The San Diego Police Officers Association has agreed to a tentative deal with the city over health care for retired workers, making it the last of the city’s six employee groups to support landmark changes to the benefit.

Police officers would receive the same deal as other city workers. In addition, an adverse court ruling on retiree health care stemming from a police board member’s lawsuit wouldn’t be appealed under the new agreement signed Friday.

The deal solidifies future health care allowances for 7,440 current employees but also lowers the benefit’s value and requires some workers to contribute to the benefit from their paychecks, as much as $1,200 annually. Mayor Jerry Sanders said the changes would shave $714 million off the $2.5 billion in taxpayer money expected to be spent on retiree health care over the next 25 years.

The deal — reached with unions in May — also allows the city to modify or eliminate retiree health care beginning July 1, 2014, with six City Council votes. It also requires an annual actuarial analysis of costs and projections to ensure the deal remains solid for taxpayers.

A Superior Court judge ruled in April that the city had no obligation to provide health care to current employees once they retire despite a promise made nearly 30 years ago by former Mayor Pete Wilson. That ruling stems from a lawsuit filed by two officers, including Randy Levitt, who sits on the police association’s board, after city officials instituted a cap on retiree health payouts in 2009. They argued that the benefit was vested and therefore a vote of all city employees — as required by the city charter — was needed before any changed could be made.

City officials used that decision as leverage in ongoing labor negotiations over the benefit and both sides agreed on changes that would save taxpayer money and ensure workers receive some form of health care payments upon retirement.